Trade-Ideas LLC identified

New York Community Bancorp

(

NYCB

) as a "water-logged and getting wetter" (weak stocks crossing below support with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified New York Community Bancorp as such a stock due to the following factors:

  • NYCB has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $55.0 million.
  • NYCB has traded 539,223 shares today.
  • NYCB traded in a range 204.1% of the normal price range with a price range of $0.39.
  • NYCB traded below its daily resistance level (quality: 29 days, meaning that the stock is crossing a resistance level set by the last 29 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).

Stocks matching the 'Water-Logged and Getting Wetter' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying negative price action. In this case, the stock crossed an important inflection point; namely, "support" while at the same time the range of the stock's movement in price is twice its normal size. This large range foreshadows a possible continuation as the stock moves lower.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in NYCB with the Ticky from Trade-Ideas. See the FREE profile for NYCB NOW at Trade-Ideas

More details on NYCB:

New York Community Bancorp, Inc. operates as a holding company for New York Community Bank and New York Commercial Bank that offer banking products and financial services in Metro New York, New Jersey, Ohio, Florida, and Arizona. The stock currently has a dividend yield of 4.6%. Currently there are 5 analysts that rate New York Community Bancorp a buy, 1 analyst rates it a sell, and 5 rate it a hold.

The average volume for New York Community Bancorp has been 4.4 million shares per day over the past 30 days. New York Community has a market cap of $7.1 billion and is part of the financial sector and banking industry. The stock has a beta of 0.58 and a short float of 8.7% with 10.71 days to cover. Shares are down 9.9% year-to-date as of the close of trading on Tuesday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates New York Community Bancorp as a

hold

. The company's strengths can be seen in multiple areas, such as its increase in net income, expanding profit margins and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:

  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Thrifts & Mortgage Finance industry average. The net income increased by 8.9% when compared to the same quarter one year prior, going from $119.26 million to $129.91 million.
  • The gross profit margin for NEW YORK CMNTY BANCORP INC is currently very high, coming in at 79.14%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 28.29% is above that of the industry average.
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 9.8%. Since the same quarter one year prior, revenues slightly dropped by 4.6%. Weakness in the company's revenue seems to not be hurting the bottom line, shown by stable earnings per share.
  • NYCB has underperformed the S&P 500 Index, declining 19.83% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Thrifts & Mortgage Finance industry and the overall market on the basis of return on equity, NEW YORK CMNTY BANCORP INC underperformed against that of the industry average and is significantly less than that of the S&P 500.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.